Analysts Validate Robust Foundations for Bitcoins Surge Beyond $100,000

Unlike the December-January period, there is currently a stronger foundation for Bitcoin to rise above $100,000, as concluded by experts at CoinDesk.

The analysts presented six charts of various metrics to support their viewpoint.

Compared to the start of the year, the combination of yields on 10- and 30-year U.S. government bonds and the dollar index creates a more favorable backdrop for risk appetite in global markets.

The total market capitalization of USDT and USDC has reached a record $151 billion, which is nearly 9% higher than the average of $139 billion observed during December-January. In other words, there is now more «dry powder» available for potential cryptocurrency investments.

In contrast to the previous period, institutional investors have shifted their focus from seeking arbitrage opportunities to making direct bullish bets. This shift is reflected in the increase in inflows into BTC-ETFs and a more measured growth in open interest on the CME.

The latter metric rose to $17 billion, still short of its peak of $22.8 billion in December 2024. The total inflow into BTC-ETFs surged to an impressive $42.7 billion compared to $39.8 billion in January.

As a manifestation of FOMO sentiments, experts pointed to the combined market capitalization of two popular meme coins—SHIB and DOGE. This metric is considerably lower than the values seen in January.

In the perpetual futures market for the leading cryptocurrency, funding rates are significantly lower than the highs observed in December.

The implied volatility for Bitcoin options is much lower than the levels seen in December-January and March 2024, when prices hit ATH.

In other words, traders are not pricing in extreme price fluctuations and uncertainties that typically characterize an overheated market.

As a reminder, Standard Chartered has urged buying Bitcoin and projected its price could rise to $120,000 in the second quarter.

Meanwhile, JPMorgan anticipates that Bitcoin will outperform gold by the end of the year.